Nonsystematic - Study guides, Class notes & Summaries

SIE Exam Caril Questions and Answers Graded A+ What type of risk is associated specifically with a particular sector, company, or investment category? Unique or nonsystematic risk In which scenarios can an investor gain ownership of stock? By purchasing call options or selling call options (The holder of a call option can acquire stock at a set price if the option is exercised. Conversely, the seller of a put option must buy stock at the set price if the option is exercised) Wha...

Sources of research ideas correct answers Nonsystematic sources -Inspiration -Serendipity -Everyday occurrences Systematic sources -Past research nonsystematic sources correct answers sources for research ideas that present themselves in an unpredictable manner; a concerted attempt to locate researchable ideas has not been made non-systematic source: serendipity correct answers we look for one phenomenon but find another systematic sources correct answers thoroughly examined, c...

What type of risk is unique to a specific industry, business enterprise, or investment type? - Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - the cost of an option contract, expressed in dollars per share of the underlyi...

A risk that is specific to a particular issue or issuer is A) cannot be reduced by diversification. B) is a systematic risk. C) impacts a broad group of securities equally. D) a nonsystematic risk. - correct answer D) a nonsystematic risk. - nonsystematic risk: specific to a particular issue or issuer - mitigated/ hedge w/ diversification Your customer, Ivan, owns a diversified portfolio of large cap stocks. He would like to find a...

SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) SIE Comprehensive Final Exam (2024/2025) || With Questions & All Correct Solutions (Rated A+) What is a tender offer? - ANSWER - When a company offers to buy outstanding securities for cash or for cash plus other securities from its stockholders or bondholders What is a buy-back? - ANSWER - Sometimes referred to as a repurchase, is when a company buys its own outstanding securities in the open ma...

Which of the following investments typically carries significant liquidity risk? A) T-bills B) Limited partnership C) Listed equities D) Mutual funds Ans: B) Limited partnership Limited partnerships are not freely transferable and have no established secondary market. With an LP, assume you will own it through the life of the program. All the others listed have active secondary markets and are very liquid. Diversifying a portfolio may help mitigate which of these types of risk? A) Ma...

Enterprise Risk - encompasses all major risks faced by a business firm, which include: pure risk, speculative risk, strategic risk, operational risk, and financial risk Expense Loading - the amount needed to pay all expenses, including commissions, general administrative expenses, state premium taxes, acquisition expenses, and an allowance for contingencies and profit Admitted Assets - assets that an insurer can show on its statutory balance sheet in determining its financial condition Ad...

What type of risk is unique to a specific industry, business enterprise, or investment type? - ️️Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - ️️Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - ️️the cost of an option contract, expressed in dollars per share...

What type of risk is unique to a specific industry, business enterprise, or investment type? correct answer: Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? correct answer: Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium correct answer: the cost of an option contract, exp...

What type of risk is unique to a specific industry, business enterprise, or investment type? - Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - the cost of an option contract, expressed in dollars per share of the underlying...